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Metal Recycling News February 13, 2020 09:30:33 AM

Indonesia to Ease Restrictions on Scrap Metal Imports

Paul Ploumis
ScrapMonster Author
The government intends to boost steel mill utilization rates by ensuring availability of scrap through easing of import restrictions on scrap materials.

Indonesia to Ease Restrictions on Scrap Metal Imports

SEATTLE (Scrap Monster): The Indonesian government announced that it plans to announce relaxation on rules of import of scrap metal used as raw material by the steelmaking industry in the country. The government aims to restrict steel products imports by reviving the domestic steel manufacturing sector.

According to Agus Gumiwang Kartasasmita, Indonesia’s Minister of Industry, the local steel industry in the country is currently operating at a low capability utilization rate of 40%, partly on account of shortage of steel scrap, which serves as the main raw material for new steel production. The government intends to boost steel mill utilization rates by ensuring availability of scrap through easing of import restrictions on scrap materials. The government plans to equip local steel companies to be able to meet at least 70% of the total steel demand, Kartasasmita added.

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The Minister announced that the government is considering removal of scrap metal from the list of dangerous and poisonous waste. Such a move will reduce the permit requirements, thus ensuring easy imports. However, he declined to comment on the timeframe for implementation of the new rules.

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